Purpose

The Rural Housing and Economic Development (RHED) Program provides for capacity building at the State and local level for rural housing and economic development and to support innovative housing and economic development activities in rural areas.

Type of Assistance

Funds made available under this program are awarded competitively on an annual basis through a selection process conducted by HUD.

Definition of a Rural Area

This program is established to assist nonprofit organizations in rural communities across America. HUD defines rural in five ways:

1. A place having fewer than 2,500 inhabitants;
2. A county or parish with an urban population of 20,000 inhabitants or less;
3. Territory, persons and housing units in the rural portion of “extended cities”;
4. Open country that is not a part of or associated with an urban area;
5. Any place with a population not in excess of 20,000 inhabitants and not located in a Metropolitan Statistical Area.

Eligible Grantees

Eligible applicants are local rural non-profits, community development corporations (CDCs), federally recognized Indian tribes, state housing finance agencies (HFAs), and state community and/or economic development agencies.

Eligible Activities

Funds are available in 2 categories:

1. Capacity Building and Support for Innovative Housing and Economic Development activities. Capacity building involves the enhancement of existing organizations to carry out new functions and/or perform more effectively existing functions. The maximum award amount under this category is $150,000.
   
   Possible activities include hiring and training staff, purchasing software and other tools, obtaining expertise from outside sources, developing an accounting system, conducting asset inventories, developing strategic plans, seeking technical assistance, improving management capability, and purchasing or leasing office space.
   
   
2. Support for Innovative Housing and Economic Development activities is intended for, but not limited to, other costs for innovative housing and economic development activities. The maximum amount awarded in this category is $400,000.
   
   Possible activities include: preparation of plans, architectural drawings, acquisition of land and buildings, demolition, provision of infrastructure, purchase of materials and construction costs, use of local labor markets, job training and counseling for beneficiaries and financial services such as revolving loan funds and Individual Development Accounts or IDAs. Other possible activities include: homeownership and financial counseling, application of innovative construction methods; provision of financial assistance to homeowners, businesses, and developers; and the establishment of CDFIs, lines of credit, revolving loan funds, microenterprises, and small business incubators.

Rating Factors

There are five rating factors that will be used to evaluate and rate your application. They are:

1. Capacity of the Applicant and Relevant Organizational Experience
2. Need and Extent of the Problem
3. Soundness of Approach
4. Leveraging Resources
5. Achieving Program Results and Evaluation

Please refer to the specific program NOFA for further clarification.

Application Deadline

All applications must be submitted to Grants.gov on the application deadline time and date. No applications will be accepted and considered that have not been received by the deadline time and date. Only one application will be considered from any given organization.

Application

After HUD publishes a Notice of Funding Availability (NOFA) for the Rural Housing and Economic Development Program, applicants must submit specific information about a proposed project or activities in their application. After HUD makes conditional selections, applicants must then submit additional information.

Funding Status

Funding Status
FY	Amount Appropriated	Applications Received	Grants Awarded
2005	$23,677 million	306	103
2004	$24,853 million	404	105
2003	$24,838 million	305	87
2002	$25,000 million	279	101
2001	$24,945 million	331	111
2000	$25,000 million	649	103
1999	$27,000 million	700	91

Technical Guidance